FairTrade

Alliance

TAG TAG meetingmeeting

7 June 20107 June 201010am to 3 pm10am to 3 pm

Published in 2006Published in 2006Dealt with three (3) industrialization Dealt with three (3) industrialization

regimes and the three (3) tariff liberalization regimes and the three (3) tariff liberalization programsprograms

Economic liberalization scorecardEconomic liberalization scorecardGlobal, bilateral and regional trade Global, bilateral and regional trade

agreementsagreements

Five point Five point Nationalist Nationalist Development AgendaDevelopment Agenda

Looking backLooking back Three (3) industrialization regimes Three (3) industrialization regimes

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11stst two centuries – transshipment two centuries – transshipment 1800s – export crop producing economy – sugar, indigo, tobacco, 1800s – export crop producing economy – sugar, indigo, tobacco,

abaca; hacienda system; internal economyabaca; hacienda system; internal economy Turn of 20Turn of 20thth century – reinforced ‘free trade’ – Treaty of Paris (1898); century – reinforced ‘free trade’ – Treaty of Paris (1898);

Payne Aldrich Act (1909); Underwood-Simmons Tariff Act (1938)Payne Aldrich Act (1909); Underwood-Simmons Tariff Act (1938) 469T hectares (1902) to 1.6 M hectares (1939) – area planted to 469T hectares (1902) to 1.6 M hectares (1939) – area planted to

export cropsexport crops Late 20s to early 30s – world depressionLate 20s to early 30s – world depression Social and economic unrest – rise of nationalist industrialistsSocial and economic unrest – rise of nationalist industrialists After the war – no savings, devastatedAfter the war – no savings, devastated Bell Trade Agreement Bell Trade Agreement 1935 Constitution – Parity Rights1935 Constitution – Parity Rights Massive importation of consumption goods; failure to rehabilitate Massive importation of consumption goods; failure to rehabilitate

extractive export industries and restore pre-war productivityextractive export industries and restore pre-war productivity BOP and BT crises – 1949BOP and BT crises – 1949

Imposed import and foreign exchange controls – rationed dollars to import Imposed import and foreign exchange controls – rationed dollars to import substituting industries based on light manufacturingsubstituting industries based on light manufacturing

Emergence of Filipino industrializing classEmergence of Filipino industrializing class GDP 1949 – 1953 – 14.5%; 1953 – 57 – 11%GDP 1949 – 1953 – 14.5%; 1953 – 57 – 11% Go export oriented – address payment and trade deficits Go export oriented – address payment and trade deficits Deepen industrialization – less dependence on imports and increase industrial Deepen industrialization – less dependence on imports and increase industrial

capacitycapacity Macapagal borrowed $300M from IMF WB – lifted import and foreign exchange Macapagal borrowed $300M from IMF WB – lifted import and foreign exchange

controls; erected high tariff walls (not performance based nor time bound)controls; erected high tariff walls (not performance based nor time bound) 1970s $1 – P 6.50 from 50s $1 – P 2 and 60s $1 – P 3.501970s $1 – P 6.50 from 50s $1 – P 2 and 60s $1 – P 3.50 1970s – LIEO – development financing (WB, IMF, ODA, Paris Club, etc); transnational 1970s – LIEO – development financing (WB, IMF, ODA, Paris Club, etc); transnational

corporations which outsourcescorporations which outsources 1980s – WB offered SAL/SAP (Washington Consensus)1980s – WB offered SAL/SAP (Washington Consensus) Trade and investment liberalization; privatization and deregulationTrade and investment liberalization; privatization and deregulation Aquino – institutionalized privatization – Proc. 50 (creation of the Asset Privatization Aquino – institutionalized privatization – Proc. 50 (creation of the Asset Privatization

Trust)Trust) Ramos – unilateral tariff reduction program and opening up of energy and financial Ramos – unilateral tariff reduction program and opening up of energy and financial

sectorssectors Estrada – continued tariff reduction Estrada – continued tariff reduction

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WTO Trade MenuWTO Trade Menu

July FrameworkJuly Framework

Urgent Philippine ConcernsUrgent Philippine Concerns Special and Differential Treatment (SDT)Special and Differential Treatment (SDT) Non-Agricultural Market Access (NAMA)Non-Agricultural Market Access (NAMA) General Agreement on Trade in Services (GATS)General Agreement on Trade in Services (GATS) Agreement on Agriculture (AoA)Agreement on Agriculture (AoA) Safety NetsSafety Nets Trade FacilitationTrade Facilitation

AFTA and Bilaterals AFTA and Bilaterals Bilaterals with Japan, China and United StatesBilaterals with Japan, China and United States RP under AFTARP under AFTA

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Looking backLooking back Three (3) liberalization regimes Three (3) liberalization regimes

5 Point Agenda5 Point Agenda

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Alliance

1.1. Adopt a coherent, balanced and Adopt a coherent, balanced and

pro-Filipino trade development pro-Filipino trade development frameworkframework

Junk the neo-liberal paradigmJunk the neo-liberal paradigm Foster coherence on development and trade Foster coherence on development and trade

policies and define national interest in each policies and define national interest in each trade agreementtrade agreement

Create PTRO to bring about transparency Create PTRO to bring about transparency and accountabilityand accountability

5 Point Agenda5 Point Agenda

2.2.Rebuild the nation’s fencesRebuild the nation’s fences Effective Tariff SystemEffective Tariff System Stop smuggling and corruptionStop smuggling and corruption Strengthen safety net laws and rules Strengthen safety net laws and rules

against unfair trade practicesagainst unfair trade practices Promote genuine, not ruinous, Promote genuine, not ruinous,

competitioncompetition

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5 Point Agenda5 Point Agenda

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3. Build up the nation’s 3. Build up the nation’s productive capacityproductive capacity

Resolve the fiscal and debt crisisResolve the fiscal and debt crisis Mobilize domestic investments for recovery, Mobilize domestic investments for recovery,

jobs and incomesjobs and incomes Rebuild the nation’s industrial baseRebuild the nation’s industrial base Rebuild the nation’s agriculture baseRebuild the nation’s agriculture base Strategize the development of our service Strategize the development of our service

sectorsector Scale the chainScale the chain

5 Point Agenda5 Point Agenda

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4. Unleash the people’s 4. Unleash the people’s productive capacityproductive capacity

Re-building the nation’s fences, building up the nation’s Re-building the nation’s fences, building up the nation’s productive capacity and re-calibration of trade and productive capacity and re-calibration of trade and development policiesdevelopment policies

Access quality but Access quality but continuingcontinuing system of education and system of education and technical-vocational training,technical-vocational training,

Completion of programs and decisive measures to address Completion of programs and decisive measures to address old as well as new issues related to farm productivity, rural old as well as new issues related to farm productivity, rural employment and countryside developmentemployment and countryside development

Assisting the informal sector micro enterprises in upgrading Assisting the informal sector micro enterprises in upgrading their operations and in gaining access to affordable credit, their operations and in gaining access to affordable credit, new markets, technology, and business skills development.new markets, technology, and business skills development.

5 Point Agenda5 Point Agenda5. 5. Develop a culture of industrialism, tangkilikan, Develop a culture of industrialism, tangkilikan,

excellence and economic nationalismexcellence and economic nationalism That the national flag law be enforced in all agencies. Products of displaced That the national flag law be enforced in all agencies. Products of displaced

workers such as garments and shoe producers be given primary attention workers such as garments and shoe producers be given primary attention (an appropriate Executive Order should be released NOW),(an appropriate Executive Order should be released NOW),

That Government and the Fair Trade Alliance work out a system of national That Government and the Fair Trade Alliance work out a system of national labeling for fair trade products,labeling for fair trade products,

That big enterprise-small enterprise business linkaging program should be That big enterprise-small enterprise business linkaging program should be strengthenedstrengthened

That the Tangkilikan philosophy and programs promoting buy-Philippine-That the Tangkilikan philosophy and programs promoting buy-Philippine-made products should be taught in all schools and in all levelsmade products should be taught in all schools and in all levels

That LGUs support tangkilikan among barangay-based enterprises,That LGUs support tangkilikan among barangay-based enterprises, The documentation of good tangkilikan practices, andThe documentation of good tangkilikan practices, and The enforcement of product standards and link up with the Philippine The enforcement of product standards and link up with the Philippine

Product Safety and Quality Foundation (PPSQF) for futureProduct Safety and Quality Foundation (PPSQF) for future collaboration collaboration effortsefforts

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The ChallengeThe Challenge

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Alliance

Fearlessly make bold Fearlessly make bold economic and trade economic and trade

policies!policies!

Maraming Salamat Po!Maraming Salamat Po!

FairTrade

Alliance